“China’s property sector remains a drag even with growth showing signs of stabilising,” the institute said in a note on Tuesday.
Commodity futures pricing in Singapore retreated from six-month highs to stand at $US120.80 per tonne for October contracts. Mining heavyweights BHP dropped 1.4 per cent to $45.10, Fortescue Metals shed 1.1 per cent to $20.97 and Rio Tinto fell 0.7 per cent lower to $118.54.
The rate-sensitive real estate and consumer staples sectors were also a drag, both falling about 0.7 per cent, ahead the US Federal Reserve’s policy announcement on Thursday at 4.15am AEST, when the central bank is expected to reaffirm the “higher-for-longer” message on interest rates.
Energy was the only one of the 11 ASX sectors to meaningfully push higher, ending the day 0.2 per cent firmer.
Oil and gas giants posted modest gains as the oil price further rallied. The Brent Crude gained another 0.5 per cent, edging closer to $US95 a barrel.
Crude has rallied more than 30 per cent since mid-June as Saudi Arabia and Russia curtailed exports in a bid to decrease inventories and drive a rebound in prices. Santos jumped 0.9 per cent to $7.85 and Beach Energy rose 0.3 per cent to $1.66.
Commenting on the rally, Chevron CEO Mike Wirth said he expected the oil price to return to $US100 a barrel, Bloomberg reported.
Coal miners also posted strong gains, led by New Hope, which leapt 2.1 per cent to $6.30, hitting its higher level since January, after posting a $1 billion profit on strong coal demand and record high prices. Fellow coal miners Whitehaven Coal and Yancoal also rallied 1.2 per cent and 2.6 per cent, respectively.
Gold producers helped buoy the struggling materials sector, with the spot price of the precious metal rallying above $US1930 as the $US weakened ahead of the Federal Open Market Committee’s rate decision this week.
Newcrest Mining gained 1.4 per cent to $26.60, Evolution Mining jumped 1.4 per cent to $3.70 and Northern Star edged up 0.4 per cent to $11.40.
Newcrest extended its gains on news that its takeover by global mining giant Newmont, had received approval from Australia’s Foreign Investment Review Board. Further approvals are still pending.
In other company news, Orica jumped 1.4 per cent to $15.88. The explosives maker has ramped up its targets for direct emissions reduction and said it has ambition to cut indirect emissions.
Logistics group Qube Holdings fell 1 per cent to $2.89 after reporting the death of an employee following an incident at its forestry-harvesting operations in South Australia.
Asset management company Pacific Current Group dropped 0.6 per cent to $11.20 on plans to buy a stake of up to $62 million in US-based Avante Capital Partners, a private credit investment outlet.
Shares in Afterpay-owner Block retreated 4.5 per cent to $78.94. The CEO of the fintech’s Square payments segment, Alyssa Henry, will step down at the end of the month. Founder Jack Dorsey will step into the role on October 2.
Seven Group gained 2.1 per cent to $29.35 following an upgrade from brokerage house Bell Potter to a “buy” rating, with a price target of $33.00.
Silver Lake Resources bounced 5.1 per cent to 92.5¢. Shares fell late in trading on Monday, when the company revealed itself as the buyer of an 11 per cent stake in northern WA gold miner Red 5. Despite the rally, Silver Lake Resources shares remain 5 per cent down from their opening price on Monday.